CoinOut Entrepreneur SHUTSDOWN The Sharks & Treats Them As "Equals" | Shark Tank US

next up is a solution for unwanted loose change [Music] hello sharks my name is Jeff Whitton I'm from Mamaroneck New York and my company is coin out I'm seeking 250 000 in exchange for a seven and a half stake of seven half percent stake of my company sharks we've all been here you're paying for your iced latte at the local coffee joint hey there and your morning is off to a great start until this moment getting back Loose Change oh I hate Loose Change it's filthy it doesn't fit in your wallet or your skinny jeans getting coins back from cash is a completely inefficient annoying and stupid way to transact instead turn your loose change into easy money with coin out the most convenient way to digitize or lose change we're getting rid of those pesky pennies allowing people to take full control over their money let me show you how it works so you're paying with cash at a participating Merchant and your change is a dollar and 34 cents after handing over the cash you simply ask the cashier I'd like to coin out when she turns a device you simply enter your phone number into the device at checkout and you can choose if you want to coin out just the coins the 34 cents or the full change the dollar 34 cents to your coin out wallet hit confirm and boom transactions complete you'll get a text message confirming the transaction along with instructions to set up your account online later and the best part is there's no app to download no financial information needed and no sign up required until you're ready to cash out sharks carrying around coins simply doesn't make sense so the next time you check out coin out can I pay with my coin out account next time I go to get a coffee that's one of the options so we have four Cash Out options right now for customers you can transfer to your bank account you can turn it into an Amazon gift card you can donate to charity or the last option is redeeming it in store Jeff why why are you not going to get crushed like a cockroach in this how can you possibly beat the giant payment operators long term so I'll tell you why please first of all cash is not new no one has done this the reason why no one's done this is because look everyone in the industry thinks cash is going away but it's not nobody thinks cash is going away all the even the Bitcoin freaks don't think cash is all due respect you are going to get crushed Mr Wonderful with all due respect we're not going to get crush the technology we've built it's of course it can be replicated but it's difficult to build okay you also you need a banking relationship and you need a regulatory structure in place that's not straight I feel like I'm at a funeral why would that retailer have that screen there and what's in there for them first of all cash is very expensive for the retailer so think about from getting delivery armored truck delivery of all the coin this happens at my local pizzeria they get an armored truck delivery it's crazy it's so expensive the cost is number one number two is this is an effective loyalty program for the retailers I just want to know if the Barista is good Kevin let him talk is looking at fear at you because she knows that dead man walking with all due respect let me finish yes so the number two the Loyalty program is key for these guys okay we build the connective tissue between the merchant and the cash customer that's previously Anonymous I think it's a great idea I hate carrying change that's because you're rich walk me through how you make money at it what's the the business model we charge Merchants 20 bucks a month and then we also 20 bucks a month 20 bucks a month we also earn three percent on each transaction so let me tell you my experience all right and this actually goes back to Shark Tank I was in law school I was on the path to become a corporate lawyer and I watched The Scrub Daddy episode I have my property textbook next to me and I'm looking at this guy and this guy's just teeming with emotion and energy and I'm like wow this guy like he really cares about what he's invested in and I said I want to be the next Scrub Daddy I really did and this has been a long drawn out process I studied the market okay hold on I had a full-time offer at Apple turned it down full-time clear path to corporate law turned it down I've got a ton invested in this I'm related we raised 460 000 family friends some of my own money okay so Jeff here's what I'm hearing people want to use alternative Payment Systems to simplify their lives right the issue for you is getting people to use your application agreed that's not cheap and you're trying to get 20 bucks a month out of all the applications that that Barista could possibly run but okay fair fair points however change is a big problem no one's solved it okay let me just tell you how I solved it here's my credit card okay fine fine okay but however the numbers tell a different story Mark 32 of all U.S transactions are still done in cash 32 30 that's more than credit more than debit it's in the Merchant's interest to do more of these transactions data is King in this world if you go to any major coffee chain only 15 are on their loyalty program they're not accessing any of these customers that are paying with cash because they don't want to download an app big Merchants are going to love this I gotta give this kid a compliment I don't think I've ever seen anybody go one-on-one with the sharks basically dismiss Kevin he got reprimanded by you you treat Mark as though he's equal here good for you Jeff I'm here come out here that doesn't matter we told you everything that's wrong with it yeah you keep tell us what's working four months okay we've done 2500 transactions the customers that use it love it and are coming back the problem you're really solving is for people who don't like change the loyalty and the other stuff there's a benefit yeah but that's the fundamental problem yes right the part where you put in the phone number yes and stored it and then you use that in the cloud to accumulate everything right yes clever the best part of everything you've told me is that the idea that for any loyalty program the Barista just says put in your phone number if and when you decide to join you're going to have accumulated all these benefits yeah and we'll track that's brilliant the fact that you're focused on coin out is horrific right I know you disagree you're trying to get both a consumer to be aware of it and the Barista to also be aware of it the fact that you just focused on one feature of what could be a bigger solution I have a real problem okay I'm out I hate coins I don't even like to carry money period so I'm definitely like your customer it could take off or it could just fizzle right and I don't know how I'm gonna get my 250 000 back I'm sorry I'm out fair enough look if we get to 100 000 locations which in the franchise model if it works The Dominoes start falling you can get to that's a 30 million dollar run rate the big retail at the time the time is now these guys are dying for something like this how long would it take you to get a thousand retailers we expect to get on to 700 locations by the end of this year next year we'll expect to get the 3 000. I totally believe you're going to make this thing happen I'm going to give you your 250 for 15 percent but it's contingent on you getting those locations by year ending because that's the missing key to this whole program [Music] with all due respect the contingency there is untenable I'm not gonna do a contingency based on locations whoa but you said you could get the locations and I believe I can but it's not in my area enough to make the deal dependent that doesn't mean that I'm very confident in this business if you if you don't see this is your confidence long-term Vision if it's going to be contingent on getting a number within six months then I don't think you fully believe in the vision you didn't believe Mr Wonderful you would never make that sort of a deal but if it was only offer I had I might consider it you said you don't have the confidence to get there I do have the confidence when I borrowed money for my business I guarantee that I'd pay them back within six months but and I would have never taken the original thousand dollars unless I felt entirely sure I would find some way to get that money back to that investor fair enough fair enough fair enough but I'm out yeah okay okay Jeff I'm gonna make you an offer you wouldn't take a contingency deal at 15 how much pain are you willing to take if you don't have that confidence and you don't want a contingency I'll do the 250 000 for 25 percent thank you for your offer um I'd love to see if there are any other offers because it should cost you ten percent if you're not willing to be confident enough to scale at the rate you believe it's wonderful I haven't felt the love from you today at all so I don't know I don't even know it's not about love it's about money but you need to be my partner in this so there's been nothing that you've said today to convey that you're at all interested in the business Jeff when I started my business my bank said every quarter you have to hit a certain level of sales for us to continue to give you the money of course if I didn't hit him they wanted their money back of course maybe the 700 locations is too much of a stretch okay but you've got to prove it out Chateau I'll give you the 250 000 15 Equity but I wanna see a successful pilot with a large-scale retailer appreciate your offer thank you very much I think it's a fair contingency how about would you come down to um I would do 10 and look I think 150 000 15 your other offer is 250 000 for 25 from Kevin agreed but look I think we've proven that that the technology it's pretty cool this is a huge idea a huge Market I don't think it'll move you got to make a decision hold on I'm not going to move you're not going to move at all at 15 that's that's you you know he's not moving you're in the world of Fury so yeah I need to see that world get into reality maximum in my head was 12 and a half percent can you come down to twelve and a half percent so hang on a second you were willing to give up 12 and a half percent but for the other two and a half you're not willing to make that the 12 and a half percent was the highest that I wanted to go Jeffrey I'm a simple guy okay so let's So it's 15 you know if can I just I have one contingency if we do the deal Kevin can't use the product congratulations congratulations Jeff before you go don't forget to subscribe to the Shark Tank Youtube channel and ring the notification Bell to keep up with everything that's bubbling in the tank

Channel: Shark Tank Global

Views: 3,272,141

Keywords: Shark Tank, Shark Tank US, Shark Tank Australia, Kevin O’Leary, Barbara Corcoran, Daymond John, Robert Herjavec, Mark Cuban, Lori Greiner, Dragons’ Den, Money Tigers, Entrepreneurship, investment, reality tv, coinout shark tank, coinout cash out, coin out, coin out shark tank, coin out app, shark tank intense moments, shark tank intense negotiations, shark tank india intense deals

Id: qx6m3xxw5RM

Length: 11min 40sec (700 seconds)

Published: Tue Jan 24 2023